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USG CORPORATION RECEIVES OVERWHELMING APPROVAL FOR PLAN OF FINANCIAL RESTRUCTURING, FINAL IMPLEMENTATION STAGE BEGINS

 CHICAGO, March 17 /PRNewswire/ -- After more than two years of financial restructuring, USG Corporation (NYSE: USG) announced today that its prepackaged holding-company-only bankruptcy plan has been overwhelmingly approved by all affected creditors. The plan received over 95 percent approval from every impaired creditor class, including the 16 percent bondholders and shareholders, and was filed today with the Bankruptcy court in Delaware, the state of USG's incorporation.
 First Day Motions Approved by Bankruptcy Court
 The proceeding has been assigned to United States Bankruptcy Judge Helen S. Balick. The court has already approved the corporation's first day motions authorizing USG to continue to pay all employees and suppliers throughout the bankruptcy proceeding, and to continue to pay all employee and retiree benefits without interruption. The court also approved other orders which, among other things, will allow USG to continue to pay interest on all of the corporation's senior debt. The court has scheduled the confirmation hearing for April 23, 1993.
 Connolly Looks to Future
 Commenting on the results of the solicitation and the bankruptcy filing, USG Chairman, CEO and President Eugene B. Connolly said, "The process of de-leveraging has been time consuming, but it is gratifying to achieve such overwhelming support from the affected creditors. This is clearly a vote of confidence by our stockholders and bondholders that affirms their confidence in the underlying value of USG's business. With their support, we look forward to an expeditious bankruptcy process; and returning our full attention to improving on the fundamental strengths of our core businesses."
 All Trade Creditors are Unaffected by Filing
 Because the prepackaged bankruptcy plan is limited to the parent holding company only, the Chapter 11 filing will have no impact on the day-to-day operations of USG's operating subsidiaries including U.S. Gypsum Company, USG Interiors, L&W Supply, CGC Inc. and USG International. The operating subsidiaries will not be parties to the bankruptcy, and will continue to fulfill all of their supplier, customer and employee obligations in the normal course of business. In addition, the first day orders entered by the court allow USG Corporation to continue to pay all trade vendors and employees in the normal course of business, including any pre-petition amounts which may have been outstanding on the day of the filing.
 To ensure that USG's major operating subsidiaries will have substantial liquidity throughout the bankruptcy proceeding, an $80 million interim receivables financing facility has been made available to U.S. Gypsum Company and USG Interiors. All subsidiaries outside of this agreement have their own cash balances to pay trade creditors and employees. As of Dec. 31, 1992, USG and its subsidiaries had over $180 million of cash on hand to support their trade credit and supplier relationships.
 Voting Report
 The prepackaged bankruptcy plan received the following levels of support from each of the impaired creditor and equity classes. All figures indicated are based on the votes actually cast except for the final column which indicates the face value that actually voted in each class.
 Percent of
 Face Value
 Percent Approval of Percent Approval of that
 Face Value Voting Holders Voting Voted
 Bank Claims 100.0 100.0 100.0
 8 percent Sr. Notes 100.0 100.0 100.0
 7-3/8 pct. Sr. Notes 99.9 99.5 85.3
 13-1/4 pct. Sr. Subs. 99.2 98.1 83.5
 16 percent Jr. Subs. 97.7 95.4 76.1
 Stockholders 95.3 92.2 61.8
 In a bankruptcy proceeding, 2/3 of the face value voting in each creditor class and 50 percent in number of those voting in each creditor class must approve the plan of reorganization. In a prepackaged bankruptcy proceeding, the negotiation and approval of a restructuring plan is completed before a company files for Chapter 11. This significantly shortens the time a company spends in bankruptcy. Based on the schedule set by the court, USG hopes to emerge from the Chapter 11 process by the end of the second quarter.
 USG Corporation subsidiaries are market leaders in their key product groups of gypsum wallboard, joint compound and related gypsum products, ceiling tile and grid and building products distribution.
 -0- 3/17/93
 /CONTACT: USG Corporate Communications, 312-606-4124, or Investor Relations, 312-606-5594/
 (USG)


CO: USG Corporation ST: Illinois IN: CST SU: RCN

WB -- NY047 -- 7018 03/17/93 11:59 EST
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Date:Mar 17, 1993
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